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Fresh attack on Standard Life

Christine Seib says that huge pay rises for directors amid poor performance may lead members to force a demutualisation

April 26 2003, 1:00am, The Times

STANDARD Life policyholders could be in line for windfalls averaging £2,500 each if sufficient policyholders succeed in forcing the life insurer to demutualise. David Stonebanks, a retired lecturer, has started collecting the 1,000 signatures he needs to call an extraordinary meeting.

At the meeting he will demand that Standard Life’s management list the insurer on the London Stock Exchange, transforming policyholders into shareholders.

Mr Stonebanks estimates that each of the insurer’s 2.3 million policholders will receive shares worth about £2,500, based on a market capitalisation of £6 billion. He needs 75 per cent of all policyholders to vote for demutualisation for the listing to go ahead.

But Iain Lumsden, Standard Life’s chief executive, says he will fight any attempt to demutualise with a publicity campaign…